The Newcastle-based LSL Property Services plc has acquired a 65% interest in Group First Limited.

The business, which runs the likes of Your Move and Reeds Rains, completed the transaction through a wholly owned subsidiary, the consideration for the initial investment being £9.1m in cash.

Half of this is payable on completion, with the other half payable during 2017.

The agreement also includes put and call option provisions from the date the Group First Limited 2018 audited accounts are filed at Companies House, which if exercised would increase LSL’s investment to up to 100%.

The additional consideration payable for the remaining shares would be calculated on an earnings multiple of between five and six times EBITA plus excess cash in the business and is capped at a maximum of £25m.

Group First Limited provides mortgage and protection brokerage services to purchasers of new homes through its subsidiaries, Mortgages First Limited and Insurance First Brokers Limited.

The group reported profit before tax of £0.7m for the year ended May 31, 2015, at which date it had gross assets of £1.8m.

The management team, who will retain a 35% interest, is led by Paul Maston, who founded the business in 1988.

Mr Maston will continue as CEO of the company following the deal, which is being funded from LSL’s existing banking facilities.

Ian Crabb, LSL Group CEO, said: “This investment supports LSL’s strategy to grow long term profitability in the provision of residential property services in the UK, by identifying value enhancing opportunities.